Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1887-08-31
WHEAT CORNER COLLAPSE.
Tho Bank of Nevada Believed to Have
Been Back OF the Brokers Who are
Broke-Dresbach & Rosenfeld Lay
Down on Their Contract and Great
Excitement In Consequence.

AAVAV~D100O0CA q AhV00AA0lU AOy
Down on Their Contract and Great
Excitement In Consequence.
is practically at sea regarding the outcome
of the wheat corner, and few can be found
to hazard his opinion as to the outcome.
The fact is we'll settled that firms having
unsettled contracts with Dresbach &
Rosenfeld will have to bear the big losses
growing out of the deal. This afternoon
John Rosenfeld filed deed, transferring all
his property, valued at $500, 900, to the
Nevada bank. This is supposed to prove
the connection Of that institution with the
deal. Neither Mackay nor Flood could
be seen at their office to-day, and it was
not expected that they would make a
statement in any event. Vice-President
Brander, OF the Nevada bank. declined to
make statement of any kind.
JOHN RosENFELD IN EXPLANATION
OF the decision reached by himself and
Dresbach to carry out their contract said:
We have paid out all the money we had
and can get no more accommodation at
the banks and have had to stop. That is
all there is in it. Someone will make a
great deal of money out OF this, for those
who have the coin, mean people in Eng
are holding at a .ong. II we could have
gained more time we might have pulled
through, but now all is over with us.
Money has been tight all along and
the real estate boom has made
it tighter and shut us off from all
The call board has ad-
journed until next Monday, but even
Though notice has been given by Dresbach
& Rosenfeli to sell all the wheat in their
name, it is believed that the board may be
again adjourned for an indefinite time,
though how this will mend matters does
not appear. As near as can be ascer-
tanned, after returning
THE ORIGINAL DEPOSIT MONEY
of the buyers and sellers at the rate of
$4.OO per ton on the 1O3 900 tons named
in the agreement of August 3, and which
reduced the margins $2.15 per Genital to
$2O5 Dresbach & Rosenfeld further
down about 40, 900 tons to $1.7O.
They paid out large sums TO this purpose
during the last few days and to-day was
the day when the remainder was due. 1t
would require about 100000 to meet
this part of the agreement. The inability
of Dresbach & Rosenfeld to pay out any
more money therefore leaves about co.
900 tons of wheat
IN THE HANDS OF HOLDERS
them $205 per Genital which can
not be sold except at panic prices. 1t is
feared that this will cause additional
trouble in the trade, for it will involve
heavy losses upon holders who had con-
fidence in the ability OF Dresbach & Rosen-
field to meet their obligations. OF ten
tons of wheat placed by Dres
bach & Rosenfeld in the hands of the
directors of the produce exchange, as
security for the fulfllment of the agree
ment OF August 3, about 5000 tons now
remain, having been redeemed. This 5000
tons, which could not be sold at over $26
q ton or $156. 600, was all that the owners
of the 1000 tons costing $2O5 per Genital
or 81, ,23O, 900 have to
SECURE THEM AGAINST LOSS.
William Dresbach has made an assign.
ment to c. B. Stone of all his property for
the benefit OF his creditors. The Post this
afternoon says: The feeling is generally
pfeVdlcuu HCAU "Cch VIII ooC uSCiy
times and failures are confidently pre-
dicted. That Dresbach & Rosenfeld ever
really intended to fulfill their agreement is
freely secuted by members of the board,
outside the ring, their intention being sim
ply play for time. The declaration
made by Mackay the other day had the
effect, however, OF establishing confidence
in the future carrying out OF the contracts,
as it tends to confirm the general opinion
that the Nevada bank had q more inti-
mate connection with the deal than its
managers cared to admit. If
MAcKAY REALLY MEANT WHAT HE SAID
about carrying all the wheat that was Of
fered, he has apparently changed his
mind in regard to supporting the indi-
vidual operations of Dresbach & Rosen-
field. The connection of these gentlemen,
while it is still enveloped in a certain
amount of mystery, will probably now
have sufficient light thrown upon it to de-
termine definitely who their hackers really
were. That they themselves were SIMPLY
straw men is generally admitted, it being
out of reason to suppose that people
OF their exceedingly limited means could
possibly have carried an amount OF wheat
running into the millions. That the losers
will submit quietly to be pinched upon
any such proposition is unlikely. and the
consequence will be law suits which will
eventually determine the quarter whence
the backing came.